> The people already earning a living are the ones paying for it. You'd be taking their own money from them only to give it back, less overhead.
The way means-tested welfare works is that there is e.g. a 20% tax and then people are given some benefits but the benefits are taken away very quickly, e.g. you lose 70 cents in benefits for every dollar of income. It means that low income people are effectively paying a 70% marginal tax rate while the rich pay 20%, which means there is a much lower incentive for the poor to make some more money. Especially when making more money can also cost more in expenses like transportation and child care, which can eat more than the part the government didn't take.
The way a universal basic income works is that there is a somewhat higher nominal tax rate, e.g. 30%, but everyone gets the benefits unconditionally (and in cash, so less bureaucracy), so everyone has the same marginal tax rate. Which reduces the disincentive to work of means-tested welfare.
You can still have any effective tax rate you like at a given income level, by choosing the amount of the basic income and the nominal tax rate.
The way means-tested welfare works is that there is e.g. a 20% tax and then people are given some benefits but the benefits are taken away very quickly, e.g. you lose 70 cents in benefits for every dollar of income. It means that low income people are effectively paying a 70% marginal tax rate while the rich pay 20%, which means there is a much lower incentive for the poor to make some more money. Especially when making more money can also cost more in expenses like transportation and child care, which can eat more than the part the government didn't take.
The way a universal basic income works is that there is a somewhat higher nominal tax rate, e.g. 30%, but everyone gets the benefits unconditionally (and in cash, so less bureaucracy), so everyone has the same marginal tax rate. Which reduces the disincentive to work of means-tested welfare.
You can still have any effective tax rate you like at a given income level, by choosing the amount of the basic income and the nominal tax rate.